TAILIEUCHUNG - How HM Revenue & Customs handle tax credits overpayments

A second characteristic of the crisis involves the behavior of liquidity and credit spreads. Whether you look at the difference between yields on US treasuries and LIBOR or spreads on jumbo mortgages or on agency securities or municipal bonds or indices of yield, then on asset-backed securities or credit default spreads or issuance of commercial paper, and you look at the same things in the eurozone in the UK market, what you see is that over the past seven to eight months, these indicators of liquidity and credit risk have been very volatile and have at times been much higher than anything we’ve seen over the. | How HM Revenue Customs handle tax credits overpayments Introduction Section 1 - overview of overpayment recovery If the customer is still getting tax credits under their original claim If the customer is no longer entitled to tax credits or has made a new claim Challenging an overpayment - appeals and disputes Section 2 - the ongoing recovery process Process Automatic Recovery Rate Causing Hardship Section 3 - the direct recovery process Notifying the customer - TC610 Written reminders Collecting tax credits debts through PAYE Telephone contact Personal contact Household Breakdown cases Enforcement Charging Orders Section 4 - how HMRC decide what s affordable direct recovery Time to Pay introduction Time to Pay - up to ten years Time to Pay - more than ten years Time to Pay - offers of less than 10 Low affordability o Unemployment o Sickness and Incapacity Benefits o Unable to meet living expenses Special circumstances o Mental health o Exceptional circumstances Section 5 - useful information Useful Tax Credits Helpline number Business process flowchart Notice to Pay - TC610 New tax credits Time to Pay negotiating framework Example of Income and Expenditure form How HM Revenue Customs handle tax credits overpayments Introduction This is a guide aimed at advisers and intermediaries who provide support and guidance to tax credits customers. HM Revenue Customs HMRC will ask customers who have been paid too much tax credits to pay back the extra money. A customer can challenge the overpayment by appealing or disputing. More information is available at Section 1. HMRC can recover an overpayment from its customers in two ways. Section 1 - overview of overpayment recovery If the customer is still getting tax credits under their original claim If the customer s original claim is continuing HMRC will take 25 per cent from their four weekly or weekly payments of tax credits until the overpayment is recovered. If the customer s original claim is continuing and the customer is

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